The International Hotel Industry - March 2017

The International Hotel Industry - March 2017

There is an increasing blurring of the lines in the lodging sector between hotels and alternative accommodation, such as peer-to-peer rentals, serviced apartments, hostels, etc. AccorHotels has plunged head first into the alternative accommodation space with their 2016 acquisition of onefinestay and their newly launched Jo & Joe brand. Choice Hotels has dipped a toe into alternative accommodation with their holiday-rentals platform and the Spanish hotel group Room Mate has embraced the sharing economy wholeheartedly with its Be Mate offering that provides hotel services in rented apartments. More hotel chains are likely to follow this trend in the coming months and years. At the same time, there is a realisation that product quality and reliability need to be enhanced in the accommodation-rental sector if the likes of Airbnb are going to succeed in broadening their customer base to attract upmarket leisure travellers and corporate managers

HOTELS CONFRONT THE SHARING ECONOMY
Hotel associations react
Enforcement of regulations is difficult
Figure 72: Weekly number of Airbnb listings in Berlin, 2015-16
Room Mate embraces the sharing economy
Only the best are chosen
Location and booking
Hotel services on tap
The way forward?

BRAND PROLIFERATION
Development considerations a major factor
Will they all succeed?
Impact on hotel owners

CHINESE BRANDS ON THE RISE
Wanda switches to its own brands
Overseas expansion too

RISING POLITICAL UNCERTAINTY
Brexit impact
Figure 75: Sterling down 17% against the US Dollar, 2016
Weak Pound boosts UK hotels
Regions take the lead
Figure 76: UK Hotel performance, provinces vs. London, 2015, 2016 & 2017
Resort hotels booming
And now the downside
Labour to be a problem
Development costs to rise
Brexit impact on foreign hotel markets
Figure 77: Forecast for UK – the change in arrivals in selected destinations, 2017
Exposed cities
Figure 78: UK arrivals in selected city destinations, 2015
Uncertainty under Trump
Less regulation to help the bottom line
Looser banking regulations to spur development
US hotel values already declining
Labour force could be a problem
DACA
NAFTA withdrawal implications
Increased enforcement
Eliminating illegal workers to push up costs
Political risk in Europe overestimated
TOP TEN HOTEL CHAINS WORLDWIDE
Figure 79: Top 10 hotel chains ranked by number of rooms, 2016
Figure 80: Change in the number of branded rooms by top 10 hotel groups in 2015
1.4 million rooms in the pipeline
Leading hotel chains in Europe
Figure 81: European hospitality companies by number of rooms at 1 January 2016*
Leading hotel brands in Europe
Figure 82: European hotel brands by number of rooms at 1 January 2016*

BEST WESTERN
SWOT analysis
Brand portfolio
Best Western
Prototype specifications
Figure 95: Prototype specifications for a new-build Best Western hotel, 2017
Best Western Executive Residency
Best Western Plus
Best Western Premier
Best Western Premier Collection
GL?
V?b
Prototype specifications
Figure 96: Prototype specifications for a new-build V?b hotel, 2017
Recent developments
SureStay Hotels, Best Western’s new ‘white label’ franchise
Developed in collaboration with the AAHOA
Benefits for hoteliers
TripAdvisor score an important criterion
Incentives for initial members